China Regulator
Steps Up Scrutiny
Of Loan Disposals

By

Andrew Batson Dow Jones Newswires

Updated Dec. 15, 2004 12:01 a.m. ET

China's banking regulator said it would tighten its scrutiny of how banks write off nonperforming loans, after the recent rush by banks to get large amounts of bad debts off their books generated numerous irregularities.

This year the Chinese banking system's nonperforming loan ratio has been cut by about four or five percentage points, thanks in part to government help. Official estimates now range from 13% to 16%, depending on which banks are included. Outside estimates put the total ratio much higher, in the area of...